By Frank Kamuntu
A commercial dispute between law firm Muwema & Co. Advocates and landlord Downtown Investments Ltd escalated into a complex legal and criminal battle, drawing attention from Kampala’s business and legal circles.
At the centre of the disagreement are rent arrears, a contested option to purchase a prime Kololo property, and allegations of robbery following the law firm’s eviction from Plot 50, Windsor Crescent Road.
The firm’s Managing Partner, Senior Counsel Fred Muwema, maintains that the dispute is not about unpaid rent but a failed property transaction.
He says the firm exercised an option to purchase the premises in August 2021 with an offer of $1.05 million, based on market valuation.
“The lease also gave us an option to purchase the property,” Muwema explained, noting that the firm invested heavily in renovations, including roofing, plumbing, and electrical systems, since moving in 2014.
Negotiations reportedly stalled following the illness and eventual death of landlord representative Tusha Ruparelia in December 2021. Muwema argued that exercising the purchase option transformed the legal relationship: “When you exercise an option to purchase, you cease to be a tenant… You become a purchaser.”
Landlord Claims Rent Arrears, Court Rules
Downtown Investments maintained that Muwema & Co. remained tenants and had accumulated rent arrears of $148,300. The dispute proceeded to the Commercial Division of the High Court, where Justice Patricia Mutesi ruled in favour of the landlord.
In a decision delivered on February 20, the court ordered the firm to pay over $372,000 in rent arrears, damages, and mesne profits, and to vacate the premises.
Muwema has since challenged the ruling, questioning the computation of mesne profits. “Mesne profits must be clearly pleaded and particularised. We do not know where the figure came from,” he said.
Eviction Sparks Criminal Allegations
The dispute took a dramatic turn following the firm’s eviction in early March. According to Downtown Investments, a re-entry exercise was conducted in the presence of police and local authorities, with an inventory of removed items prepared.
Muwema & Co., however, described the eviction as unlawful and accused the landlord’s agents of criminal conduct. The firm has filed a criminal complaint alleging aggravated robbery, claiming that sensitive materials, including more than 1,000 legal files, computers, and cash, were seized. “Our work is document-based… the seizure disrupted many transactions and court matters,” Muwema said.
Relocation and Ongoing Legal Battle
Muwema & Co. has since relocated its operations to Nakasero Road and is working to restore services. Despite the move, the dispute remains unresolved, with parallel civil and criminal proceedings ongoing.
Legal experts say the case highlights gaps in Uganda’s commercial property framework, particularly the interpretation of option-to-purchase clauses, the enforcement of tenancy obligations during disputes, and the handling of evictions involving business premises.
Observers also note that unforeseen events, such as the illness or death of key parties, can derail contractual processes and escalate commercial conflicts.
As proceedings continue, the case is expected to set important precedents for landlord-tenant relations and commercial property law in Uganda.
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